Johnson Controls, Inc. (NYSE: JCI) announced [recently] that it is exploring strategic options for the separation of its automotive business.
“[Our recent] announcement continues our strategy of proactive portfolio management to drive focus on strategic product-oriented businesses where we can be a global market leader, drive more profitable growth and deliver maximum long-term value for our customers and shareholders,” said Alex Molinaroli, chairman and chief executive officer, Johnson Controls. “I am very pleased that we are consistently delivering on our operating commitments while also building a strong foundation for growth by leveraging our Johnson Controls Operating System (JCOS) across the company.”
The JCOS reflects “the Johnson Controls way” and provides an operational vehicle to create value through systemic application of strategic capabilities across the company. As discussed at the company’s analyst meeting in December 2014, the JCOS is already delivering results and is expected to yield $2 billion in incremental segment income by 2020 through operational effectiveness and increased speed to market.
Johnson Controls said it had no specific timetable for the completion of the strategic review, which includes a full range of strategic options for the automotive business. The company is also continuing to actively evaluate growth platforms that are aligned with the unique operational capabilities and specific attributes of its multi-industrial portfolio.
Johnson Controls has engaged Goldman Sachs and Centerview Partners to serve as financial advisors, and Wachtell, Lipton, Rosen and Katz to serve as legal advisor in connection with this strategic review.
About Johnson Controls:
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 170,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. In 2015, Corporate Responsibility Magazine recognized Johnson Controls as the #14 company in its annual “100 Best Corporate Citizens” list.
Johnson Controls, Inc. has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “forecast,” “project” or “plan” or terms of similar meaning are also generally intended to identify forward-looking statements. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the company’s control. These factors include uncertainties as to the timing of any separation transaction and whether it will be completed, the possibility that various closing conditions for a separation transaction may not be satisfied or waived, the impact of the strategic review and any separation transaction on the businesses of Johnson Controls and the Automotive Experience business on a standalone basis if the separation is completed, whether the operational, marketing and strategic benefits of separation can be achieved and whether the costs and expenses of the separation can be controlled within expectations. Other factors include strength of the U.S. or other economies, automotive vehicle production levels, mix and schedules, cancellation of or changes to commercial contracts, as well as other factors discussed in Item 1A of Part I of Johnson Controls’ most recent Annual Report on Form 10-K for the year ended September 30, 2014. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this document are only made as of the date of this document, and Johnson Controls assumes no obligation, and disclaims any obligation, to update forward-looking statements to reflect events or circumstances occurring after the date of this document.